Synergy of projects in H2020 and OPEIC How to become a European Innovation Champion? Marcela Příhodová Financial Instruments and Project Management Dpt., MIT Prague 25.5. 2016 1
R&D Support in the Czech Republic 2
Our experience OPEI support: Innovation activities grants SME s grants, financial instruments Environment services infrastructure STP, Incubators, Clusters, KTP, IPR Patent, Potencial prg. Start up connection CzechEcoSystem, CzechAccelerator, Marketing Fairs & Exhibitions international market Applied R & D EU and national budget huge pool for financing Less application in the international research cooperation, esp. in the EU Framework Programme, H2020 3
Synergy and challenge to the ESIF to EU R&D Policy Horizon 2020 > Excellence based / Non-territorial approach ESIF Understand specific objectives & features Differences EU Cohesion Policy > Socio economic development/ Placebased approach > Direct management - mostly awarded directly to final beneficiaries > Awarded through shared management to national and regional public intermediaries > Mostly competitive calls addressed mainly to international groupings through peer-review based on excellence criteria > Bi-annual work programmes > 7-years OPs Complementarities > Horizon 2020 focuses on tackling major societal challenges, maximising the competitiveness impact of research and innovation and raising and spreading levels of excellence in the research base (widening) + single beneficiary (SME) + simplification > Mostly non-competitive attribution addressed to regional players (single beneficiaries) based on strategic planning negotiation > Cohesion policy will maximise the competitiveness impact of research and innovation acting as a capacity building instrument via smart specialisation, based on learning mechanisms and critical skills in regions and Member States + interregional possibilities. Smart specialisation 4
Guide Enabling synergies between European Structural and Investment Funds, Horizon 2020 and other research, innovation and competitiveness related Union programmes Guidance for policy makers and implementing bodies Sequential funding from different sources: Upstream sequential combination: ESIF investment that enables Horizon 2020 participation Downstream sequential combination: Horizon 2020 or FP project results are used or further developed with subsequent ESIF investments Parallel funding (Parallel use of funds in separate projects): ESIF and Horizon 2020 funding are running in parallel and are mutually supportive that complement each other; Alternative funding (through ESIF): Reorientation of FP7/Horizon 2020 projects that were positively evaluated, shortlisted, but not funded given the limited budget, towards SF/ESIF. Simultaneous/cumulative funding that brings together Horizon2020 and ESIF funds in the same project aiming at achieving greater impact and efficiency (i.e. ESIF used for costs noneligible under Horizon 2020. This new combination is possible under the new regulation of Horizon 2020 (Art. 37 Rules for Participation), provided that the grants do not cover the same cost items. 5
Business manufacturing and services, primary sectors, financial sector, creative industries, social sector, large firms, SMEs, young entrepreneurs, students with business ideas, cluster and business organisations, etc. Research public and private research bodies, universities, science and technology parks, NCPs, Technology transfer offices, Horizon2020 committee members, regional ESFRI roadmaps etc. Synergies with Horizon2020 inbuilt in RIS 3 via the Entrepreneurial Discovery Process: Authorities directly concerned by Horizon 2020 shall be closely associated with EDP. RIS 3 s shall include: Entrepreneurial in composition and spirit: (risktaking, broader view beyond boundaries ) (a) "Up-stream actions" to prepare regional R&I players to participate in Horizon 2020. Different departments, if relevant at different government levels, agencies e.g. for regional development, business advice, public procurement offices, incubators, etc. Public administration NGOs and citizens initiatives related to societal challenges for which innovative solutions would be helpful, consumers associations, Talents! etc. Civil society / Users (b) "Down-stream actions" to provide the means to exploit and diffuse R&I results, stemming from Horizon 2020." See Common Provisions Regulation for ESI funds No 1303/13 annex 1, point 4.3.2. See also annex III of RIS3 Guide: http://s3platform.jrc.ec.europa.eu/s3pguide 6
Priority axis of OPEIC The OP contains four factually oriented priorities and one priority axis for technical assistance PA 1 R&D for innovation growth 1.35 bil. 31 % of allocation PA 2 Development of enterprise and competitiveness in small and medium sized enterprises 0.89 bil. 21 % of allocation PA 3 Efficient energy management, development of energy infrastructure and renewable energy sources, support for the introduction of new technologies in the management of energy and secondary raw materials 1.22 bil. 28 % of allocation PA 4 Development of high speed internet access networks and information and communications technology 0.74 bil. 17 % of allocation 7
Synergies to OPEIC What is missing in the Czech Republic? international cooperation with European Technology platforms intensive participation in the key R&D councils, boards (Access to Risk Finance) better activity in the DGs in ERA Network (not only R&D, but industrial,applied) Challenge for better coordination of capacities: In cooperation with MEYS in the H2020 activities Looking for the best practice in synergies H2020/OPEIC, Fraunhofer Inst., ISERD, TEKES Different methodology (ex ante, ex post financing) State Aid, processing, exclusion for SoE iniciative? DG s approach Regio, R&D, Compet, Growth, etc. Bonification of projects evaluation criteria COSME, EEN cooperation, innovation platforms, KETs, enterpreneurial discovery proces with using already built capacities 8
New Approach and Synergy OPEIC/SME In New head of unit H2020 support of projects close to OPEIC Launch strategy SME Instrument/Seal of Excellence: 1 stage SMEI feasibility study in Proof of Concept prg. grant/ex post consideration about special call (under DG Regio discussion) 2 stage SMEI many activities (bonification in different OPEIC prg or special call or PoC) 3 stage SMEI investment pool NIF (PoC) or EU investment of risk capital fund Further focusing in H2020 Clean Sky2 MoU preparation and stakeholder meetings Fast Track to Innovation LIFE..others?how to solve consortia? 9
EU Grant of 50,000 (lump sum) EU Grant of 500,000 to 2.5 million (indicative amount) No grant, but Coaching support Market and Investment Readiness support Promotion / networking with financiers & clients and more indirect support! 10
SME Instrument STEP 1 IDENTIFY THE PROJECTS ABOVE THRESHOLD BUT NOT FUNDED WHICH ARE CONSIDERED SUITABLE FOR A SEAL OF EXCELLENCE (SoE) Funding threshold due to H2020 budget availability Quality threshold: TO BE Funded Meriting funding... 'Seal of excellence' Rejected: not ready for funding 11
SME Instrument STEP 2. PROVIDE THE APPLICANTS ABOVE THRESHOLD WITH A SEAL OF EXCELLENCE CERTIFICATE ANNEXED TO THE REJECTION LETTER It contains: a standard text explaining that the proposal was subject to strict peer review and positively assessed the necessary data for identifying the proposal and the applicant (proposal number, acronym, title, applicant PIC, legal name, legal address) document validity to be checked through Commission services/agency The accompanying letter will indicate that: the certificate can be used to get in contact with other funding bodies to explore other funding possibilities, as for instance from national/regional Managing Authorities of the Structural Funds 12
Example of specific project OPEI Contipro Biotech s.r.o.: Establishment of the production of technically new medical device for wound dressing and fully biodegradable fibres and textiles The aim of the project is the introduction of two technically new products and one new process: device for dressing of area, chronic, infected wounds in the first stage of healing with the strong anti microbial effects given by a synthetic antiseptic fibrous materials from a fully biocompatible ad completely biodegradable polymers that are appropriate for the internal surgical applications, where they shall primarily serve for mechanical support in the beginning stages of the healing of the post op wounds new process is the process of preparation of the biodegradable fibres that has been established under own private R&D 13
Contipro Pharma a.s. H2020 Call: H2020 NMP 2014 two stage Topic: NMP 10 2014 Title: Diabetes Reversing Implants with enhanced Viability and long term Efficacy Consortium of 12 beneficiaries: Royal College of Surgeons in Ireland, Dublin City University, Eberhard Karls University Tuebingen, Utrecht University, University College Dublin, Biomedical Research Networking Center in Bioengineering, Biomaterials and Nanomedicine (Spain), Abiel S.r.l. (Italy), Explora Biotech S.r.l. (Italy), InnoCore Pharmaceuticals (Netherlands), Boston Scientific Ireland Ltd, INNOVA S.p.A. (Italy) The aim of the project is to develop a suite of functional biomaterials (β Gel) for long term clinical efficacy of transplanted pancreatic islets. Development of a suitable hyaluronic acid derivative (leader Contipro) Setting of the process of HA based hydrogel formation (leader Contipro) Incorporation of pancreatic islets (β Shell) into the hydrogel Development of a specialised minimally invasive delivery catheter (β Cath) Scale up of all processes (participation of Contipro) Pre clinical testing up to GLP animal assessment with the ultimate objective of having the Investigational Medicinal Product Dossier 14
Example of specific project CLUTEX Cluster of Technical Textiles: CORNET anti dekubitus The joint research and development of prototype multi layer textile materials within the international cooperation project with German partners (an association of textile companies and a research organization). It aims to produce new designs based on distance (3D) structures and their combinations with an aim to reduce the risk of pressure ulcers (bedsores) decubitus ulcers. unique properties of the new textile material (reducing the risk of developing these wounds and promoting their healing, ventilation function and protective barrier delivered through combining the functional properties of new textile products (using production technologies such as weaving, knitting, injection and creation of non woven elements) and functionalizing them through additivation and final modifications, including combinations of multilayer structures. 15
About CLUTEX was founded in 2006 2004 2006 mapping of a potential cluster very important step 17 founding members (companies, FT TUL, ATOK, research institutions) join together Czech companies interested in technical textile innovations Main Areas of CLUTEX Activities: improve cooperation of companies in the cluster deepen cooperation of manufacturers and research institutions provide resources for pilot developments and research projects establish contacts and cooperation with foreign clusters and institutions 16
CLUTEX projects examples LED UV curing systems for textiles and composites Czech, Belgian and German partners Development of sustainable textiles against bugs Application of biocids into textiles with tick repelling effects Promotion of technical textiles in the construction sector Providing SME with information and tools enabling them to use state of the art textiles successfully for construction 17
Results of CLUTEX Solved 25 Projects (6 international) between 2012 2015 Operated with a budget of 3 mil Euro, 82 % spent on R&D Main result is a better cooperation among industrial companies, R&D institutions and universities 18
Business cycle 19
Programme Proof of concept OPEIC financial instrument Programme structure: Activities leading to commercialization of the research results with the help of feasibility approvement o Realization of the feasibility study and commertial application, making a prototype, pre production, IPR, spin off/commertial sale etc. Allocation: 20 mil. EUR (total allocation 42 mil. EUR) Recipients: Research institutions (their branches) Type of support: financial instrument capital investment (dividing of the program allocation and special calls for financial instruments and grants) 20
The Principles of a PoC fund A tool for support in the form of capital investment MIT will establish a PoC fund from the OPEIC resources which will invest into entities created by research institutions (RI) These entities will be set up as daughter companies (SPV), esp. for the purpose of managing commercilization activities. RI will transfer their rights and know how for the specific projects to them, they will be administered through the commercialization centres RI (STP, CTT), key experts and research staff will be contracted PoC fund OPEIC gets a share in the commercialization centre in return for resources to fund activities A successful exit is a commercial use of R&D in forms of spin off creation or a licence sell RI and POC fund will share the returned resources from successful activities 21
Programmes in OPEIC PA1 PA2 PA3 PA4 Innovation Technology Renewable Sources of Potential Consultancy Energy Application Risk Capital High speed PCP Expansion Energy Savings internet Knowledge transfer partnership Marketing Smart grids I. Cooperation Innovation vouchers Infrastructure services Proof of Concept Properties Training Centres Comment: Bold letters prg. are approved by gvt. CR Low carbon technologies Energy savings in heat supply system Smart grids II. ICT and shared services 22
Venture capital financing gap As confirmed by conclusions of the Ex ante assessment of OP EIC financial instruments, the venture capital market in the Czech Republic is still little developed, it is one of the weakest ones in the EU and the entire Europe, and new innovative business entities have significant difficulties obtaining external financing Support for venture capital fits into broader government efforts support investments in the Czech Republic in, among other things, research, development and innovation and it is recommended e.g. in the National Reform Programme, the RIS3 strategy, the National Innovation Strategy or the International Competitiveness Strategy 2012 2020. Unlike the neighbouring CEE countries (Slovakia, Poland, Hungary, the Baltic states, Bulgaria), state support of venture capital has not been launched yet. State support has become an important source of funding of start up and seed stages of venture capital in Europe. 23
Support of venture capital in the Czech Republic The MIT wishes to support a new generation of new entrepreneurs who have ambitions to succeed in foreign markets and in the future can contribute to the growth of competitiveness of the Czech Republic by enhancing its focus on research, development and innovation. The global objective of the NIF project is to provide a catalyst of creation of creative entrepreneurship with a high added value from the idea and prototype (pre seed) through early stages of business (seed, start up) to a successful exit so that this process leads to innovations, their commercial realisation and support for economic growth. 24
InnovFin 25
The National Innovation Fund NIF Inspired by Israeli Yozma programme and German HTGF Expected important role of the European Investment Fund (EIF) and European Investment Bank (EIB) Mobilization of domestic venture capital market, particularly in the seed and start up stage. Ensuring know how and strengthen public awareness of this method of financing. The aim is also to increase the attractiveness of the Czech Republic for foreign venture capital funds which may bring in the Czech startup environment not only capital, but also the necessary global contacts. The investment strategy of the fund will be directed at the areas insufficiently saturated by the private sector seed (prototype) stage and high tech industries outside of ICT with a longer payback period. The feasibility study of the project was approved by the Czech government. Founding of the state investment company is in process. 26
MIT support in Life Cycle of company Revenues/production Initiation (idea) Grants or capital equity (pre seed) PROOF OF CONCEPT OPEIC Development Proof of concept Start up company NIF COINVESTMENT VENTURE CAPITAL OPEIC Fund of Funds EIF Launch Venture capital Growth CENTRAL EUROPEAN FUND OF FUNDS Expansion Later stage venture capital, banks Buyouts Maturity IPO, acquisitions Time Granst and/or friends, family, fools, capital equity (start up and seed) Prototype Business angels 27
28
Thank you for your attention! 29